NEW YORK (Reuters) - Goldman Sachs recommended shorting the S&P 500 index with a target level of 1,285 on Thursday, saying the latest U.S. data suggests that weakness in the economy has extended into June.
"This morning, the Philly Fed print of -16.6, down sequentially and worse than expected, provides further evidence that weakness has extended into June," Goldman said in a note to clients. "We now think, with incremental U.S. monetary policy on hold, the market will need to confront a deteriorating growth picture near term.
The Philadelphia Federal Reserve Bank reported that factory activity in the U.S. mid-Atlantic region contracted for a second straight month in June, with its business activity index at a reading of minus 16.6.
The S&P 500 was trading down 1.6 percent at 1,333.70 in afternoon trading.
(Reporting By Edward Krudy)
Trending On Reuters
Reliance Industries plans to restart its entire 1,400 retail fuel pump outlets in fiscal year ending March 2016, a report on the company website shows. Full Article